Token and Money Flow: Flow of User Funds for $APL

Initial Entry: USDC to $APL

The process begins when users deposit USDC into the Stakestone LiquidityPad vault. These funds are used to acquire real-world IP assets. When the vault closed and the assets were acquired, the protocol minted $APL.

Users could then claim their $APL token to the same wallet used during the USDC deposit phase.

Staking Phase: $APL to $stAPL

To earn royalties, users stake their $APL tokens into Aria Protocol’s staking contracts and receive $stAPL in return. While the original $APL is held in the contract, $stAPL passively accrues royalties.

Unstaking Phase: $stAPL back to $APL

When ready to claim royalties, users can unstake their $stAPL This action burns the $stAPL tokens and returns $APL to the user at the current exchange rate, which reflects both their original stake and accumulated royalties.

Exit: $APL to USDC

Users can then take their IPRWA tokens to a decentralized exchange (DEX) and swap them for USDC. Aria helps maintain market liquidity by periodically buying back IPRWA using royalty income, enabling smoother exits for users.

Flow of Royalty Funds

1. Royalties Received: Fiat → USDC

When underlying IP assets generate royalty income in fiat currency (e.g., from Spotify, YouTube, Sync Licensing, etc.), Aria Management Company (affiliated with Aria Protocol Labs Inc.) converts that income into USDC via a centralized onramp such as Coinbase.

2. Conversion: USDC to $APL

Aria Management Company (affiliated with Aria Protocol Labs Inc.) then uses the USDC to purchase $APL tokens from a liquidity pool on a supported DEX (e.g., USDC/$APL pair).

3. Distribution: IPRWA to Stakers

The acquired $APL tokens are deposited into the staking contract, increasing the total backing for $stAPL holders. Over time, this raises the exchange rate of $stAPL → $APL, delivering royalties proportionally to stakers.